Upside down on a car loan?
March 31st, 2010 | 
Author: AlisonFox(y) asked:
But I want a different car. NOW! I think I could get between $8-10k for my car, but my payoff is around $15k. If I sold this car to a private buyer, how would the bank handle the rest of the loan? And with bad credit, when would I be eligible to finance another vehicle. I wouldn’t even want a new one, I just want a Honda that runs better than my Chevy. Please help!
bad credit car loan
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bad credit car loan
The bank simply won’t give you the title in order for you to sell it, unless you pay them the entire outstanding balance, so you can’t do what you’re suggesting.
bad credit car loan
Use emonds.com or kbb.com to get the trade in value for your car.
If it is worth $8k, and you owe $15, there is still the difference of $7k. If you have good credit, you could possibly roll that money onto the new loan. However, since you have bad credit, it most likely will not happen. You will have to come up with this money to finalize any deal. You may want to forget Honda and try KIA or some other brand with huge rebates to help eat away at that $.
Sounds like the Chevy is giving you problems but I’m sure that $7k you will have to come up with would keep it running for a long time.
Hondas are very reliable, but they still have problems. Whose to say you do find a way and then your Honda turns out to be a problem too…now you have a larger car payment than before and still the problems you had before…I’d keep the chevy.
bad credit car loan
If you sell the car, you’ll have to come up with the cash shortfall in order to transfer the title. That’s the way it works.